Singapore salaries to rise 2.7% next year

Lloyd Doyle
November 15, 2017

Workers in Singapore can expect pay rises of about 2.7 per cent next year after inflation is taken into account, according to a survey released by human resources firm ECA International on Tuesday (Nov 14).

ECA said that next year's pay rise predictions were in line with what happened this year, when employees received a disappointing 0.1% real salary increase due to a jump in inflation caused by sterling's fall in value.

Meanwhile, business management consultancy ECA International said that United Kingdom employees were expected to receive a 0.2% real-terms salary increase in 2018, 15 times less than their European peers.

This means that wage-earners should expect to see a nominal salary increase of four per cent in 2018.

The study also revealed that United Kingdom employees received just a 0.1% real salary increase this year, lower than the 0.3% growth forecast in 2016.

But after factoring in inflation, which is expected to be 2.2 per cent next year, the real wage increase diminishes to 1.8 per cent, placing the city at fourth last in the Asia-Pacific region.

That puts the United Kingdom at the tail end of the salary increase table in Europe, ranking 23rd out of 26 countries surveyed in the region. "This reflects the fact that the Singapore economy continues to perform well on the back of global economic recovery", said Lee Quane, Regional Director - Asia at ECA International.

The annual poll noted that employers in Singapore are prepared to raise wages by about 4 per cent in 2018 - same as past year but higher inflation is "reducing real-term pay awards".

Argentina topped the global list with a projected real wage growth of 7.2 per cent.

However, Australians can expect real wages to rise by only 0.8 per cent, the survey found.

China ranked fifth globally with wage earners predicted to have six per cent real wage increments - higher than the 5.5 per cent awarded on average in 2017 - while, Hong Kongers are expected to see a real salary increase of 1.8 per cent in 2018.

A report by the Resolution Foundation warned that weekly pay will be nearly £25 lower in 2022 than previously expected, still £22.70 below the pre-crisis peak.

This "real" figure excludes inflation, which is expected to be 1.3 percent next year.

The United States and Canada are set to remain steady, with real wages growing at 0.9 and 1.1 per cent respectively.

Other reports by Iphone Fresh

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